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- Binance and Bitget transferred over 50,000 ETH to Bybit to stabilize the exchange after a $1.46B hack.
- The attack, linked to North Korea’s Lazarus Group, targeted a compromised Ethereum cold wallet.
- Bybit reassured users of financial stability and is securing bridge loans for recovery.
Binance and Bitget have rushed to Bybit’s rescue after a catastrophic security breach. The attack, attributed to the notorious North Korea-linked Lazarus Group, resulted in the theft of a staggering 401,346 ETH valued at approximately $1.46 billion from Bybit’s reserves.
Blockchain data reveals that Binance and Bitget rapidly moved more than 50,000 ETH directly into Bybit’s cold wallets in an evident bid to shore up the besieged exchange. The transfers skipped usual deposit addresses, indicating a concerted effort to bolster Bybit’s liquidity and avert market panic.
Of the emergency funds, Bitget alone contributed 39,999 ETH—half of its excess Ethereum reserves, per its Proof-of-Reserve disclosure as of Jan. 9. The sizable transfer underscores the scope of the breach and how quickly Bybit’s industry peers acted to contain further fallout.
Bybit CEO Confirms Massive Ethereum Hack
Bybit CEO Ben Zhou confirmed that the exploit was a consequence of an Ethereum cold wallet hack, compromised through a hijacked multi-signature transaction. While Zhou did not disclose information on how the breach was conducted, security professionals believe that the attack bore the hallmarks of the Lazarus Group’s past cyber attacks.
Despite the enormous loss, Zhou assured users that Bybit remains financially solvent. The exchange is currently in talks with strategic partners to secure bridge loans, further shoring up its ability to cover user assets.
Famous blockchain detective ZachXBT has blamed the attack on Lazarus Group, a cybercrime gang operating under the aegis of North Korea. The gang has earned a reputation for carrying out some of the most daring crypto robberies ever, including the high-profile $625 million Ronin Network hack in 2022, which targeted Axie Infinity.
Lazarus Group’s modus operandi typically involves advanced phishing campaigns, supply chain attacks, and vulnerabilities in exchange security protocols. The group’s involvement in the Bybit breach further underscores the growing sophistication of state-sponsored cyber threats in crypto.
Bybit Hack Sparks Crypto Security Fears
The Bybit hack has reignited security fears surrounding exchanges, particularly with increased attacks targeting centralized platforms. As Bybit battles to regain footing following the hack, the crypto space is closely watching how regulatory bodies and industry players respond.
This latest high-profile heist also highlights the need for robust security controls, active threat monitoring, and cross-industry collaboration to combat cybercrime. While Lazarus Group tirelessly persists in pursuing crypto funds to fund North Korea’s regime, exchanges must remain on high alert and continue to strengthen defenses against ever-emerging threats.
For now, Bybit’s future hinges on the success of its recovery efforts and the ongoing intervention of big industry players who step in to bring stability to an ever-volatile market.
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